Banking Abbreviations PDF- Model Questions for Banking & Govt. Exams

General Awareness is a topic that is common across different exams such as SBI Clerk, SBI PO, IBPS Exams (IBPS PO, IBPS Clerk, IBPS SO) etc. This is one section which can get you good marks if you are well-prepared. But the preparation of the General Awareness section can’t be done in days or in weeks. You need to start well in advance and therefore we have come up with this article which has a PDF of Banking Abbreviations. Start preparing current affairs with the help of Weekly PDFs.

Banking Abbreviations are commonly asked in Banking & other exams. You can expect 2-3 questions from this topic in the exam. We suggest you to take a printout of this PDF and put it in such a place so that you can revise it on a regular basis. Let’s have a look at some Model Questions from this topic:

Model Questions for Banking & Other Exams

1. What does ‘E’ in acronym ‘NEFT’ stand for?

a) Economic

b) Electronic

c) Employee

d) Enterprise

e) Equity

Ans: b

Solution:

NEFT stands for ‘National Electronic Funds Transfer’. 

NEFT is a nation-wide payment system facilitating one-to-one funds transfer. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs. 50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

2. CFMS is a system operated by the RBI to enable operations on current accounts maintained at various offices. What “C” denotes in acronym CFMS? 

a) Core

b) Circular

c) Centralised

d) Current

e) Controlling

Ans: c

Solution:

The Centralised Funds Management System (CFMS), is a system set up, operated and maintained by the Reserve Bank of India (hereinafter referred to as the ‘Bank’) to enable operations on current accounts maintained at various offices of the Bank, through standard message formats in a secure manner.

3. ‘IFSC’ is an 11-digit alpha-numeric code assigned by RBI to identify every bank branch participating in the payment system uniquely. What is the full form of IFSC?

a) Indian Fiscal System Code

b) Intra-Bank Financial System Code

c) Indian Fiscal Source Code

d) International Financial Source Code

e) Indian Financial System Code

Ans: e

Solution: 

The Indian Financial System Code (or IFSC) is an 11-digit alpha-numeric code assigned by the Reserve Bank of India to identify every bank branch participating in the payment system uniquely.

4. CBLO is a money market instrument that represents an obligation between a borrower and a lender. What does ‘B’ stands for in CBLO?

a) Banking

b) Borrowing

c) Bond

d) Bailout

e) Balance

Ans: b

Solution:

CBLO stands for ‘collateralized borrowing and lending obligation’. 

CBLO is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan. CBLO’s are used by financial institutions that don’t have access to India’s interbank call money market. These instruments are operated by the Clearing Corporation of India Ltd. (CCIL) and Reserve Bank of India (RBI). 

5. “CAGR” is a measure of growth over multiple time periods.  What “C” denotes in acronym CAGR? 

a) Calculative

b) Compound

c) Co-related

d) Credit-linked

e) Cost-linked

Ans: b

Solution:

The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

List of Important Banking Abbreviations

We hope that this PDF of Banking Abbreviation is useful in your preparation. Download other such PDFs here. Wishing you good luck with your preparation!

Banking Free Mock Test

• Sign Up on Practicemock for Updated Current Affairs, Free Topic Tests and Free Mini Mocks
• Sign Up Here to Download Free Study Material